EX-99 2 a06006991.htm

 

For further information:
Michele Lopiccolo, VP, Investor Relations
Phone 504/576-4879, Fax 504/576-2897
mlopicc@entergy.com

INVESTOR NEWS

Exhibit 99.1

August 8, 2006

ENTERGY REPORTS SECOND QUARTER EARNINGS

NEW ORLEANS - Entergy Corporation reported second quarter 2006 earnings of $1.33 per share on an as-reported basis and $1.22 per share on an operational basis, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.

Table 1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Second Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Second Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported Earnings

1.33

1.33

-

2.25

2.11

0.14

Less Special Items

0.11

(0.01)

0.12

0.13

(0.02)

0.15

Operational Earnings

1.22

1.34

(0.12)

2.12

2.13

(0.01)

Weather Impact

0.07

-

0.07

0.01

(0.01)

0.02

Operational Earnings Highlights for Second Quarter 2006

  • Utility, Parent & Other had lower earnings due to lower unbilled revenue and higher interest expense.
  • Entergy Nuclear earnings increased as a result of higher revenue due to higher energy pricing and the effect of the uprate completed at Vermont Yankee.
  • Entergy's Non-Nuclear Wholesale Assets business had higher results due to planned monetization of its ownership interest in a power development project.

"Significant progress has been achieved in initiatives aimed at both recovering from the effects of last year's storms and positioning Entergy to be fully prepared for future challenges," said J. Wayne Leonard, Entergy's chairman and chief executive officer. "Actions consistent with our regulatory compacts are being taken and we continue to aggressively pursue Community Development Block Grants and the securitization of restoration costs to mitigate the storms' effects on our customers' bills. All the while, we remain focused on delivering reliable service, growing our nuclear business, and creating value for our shareholders."

Table of Contents Page
     
I. Consolidated Results 2
II. Utility, Parent & Other Results 3
III. Competitive Businesses Results
  Entergy Nuclear
  Non-Nuclear Wholesale Assets
4
5
6
IV. Earnings Guidance 6
V. Forward-Looking Financial Data and Aspirations
VI. Appendices
A.  Entergy New Orleans, Inc. Bankruptcy
B.  Variance Analysis and Special Items
C.  Regulatory Summary
D.  Financial Performance Measures and
      Historical Performance Measures
E.  Planned Capital Expenditures
F.  Debt Maturities
G.  Definitions
H.  GAAP to Non-GAAP Reconciliations

10
11
13
15

16
17
17
19
VII. Financial Statements 22

Other Highlights:

  • Entergy Nuclear reached an agreement for the purchase of the Palisades nuclear energy plant.
  • Legislation supporting the securitization of storm costs was approved in Louisiana and Texas.
  • Entergy Mississippi received regulatory approval for recovery of storm costs.

Entergy will host a teleconference to discuss this release at 10:00 a.m. CDT on Tuesday, August 8, 2006, with access by telephone, 719-457-2621, confirmation code 6479515. The call and presentation slides can also be accessed via Entergy's web site at www.entergy.com. A replay of the teleconference will be available for the following seven days by dialing 719-457-0820, confirmation code 6479515. The replay will also be available on Entergy's web site at www.entergy.com.

 

I. Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for second quarter and year-to-date 2006 versus 2005, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other recorded lower earnings due primarily to reduced unbilled revenues while Entergy Nuclear earnings increased as a result of higher energy pricing and higher generation. Also, Entergy's non-nuclear wholesale assets business had higher results due to the planned monetization of Entergy's ownership interest in a power development project.

Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of certain measures)

Second Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Second Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported

Utility, Parent & Other

1.00

1.05

(0.05)

1.54

1.47

0.07

Entergy Nuclear

0.30

0.27

0.03

0.69

0.63

0.06

Non-Nuclear Wholesale Assets

0.03

0.01

0.02

0.02

0.01

0.01

Consolidated As-Reported Earnings

1.33

1.33

-

2.25

2.11

0.14

Less Special Items

Utility, Parent & Other

0.11

(0.01)

0.12

0.13

(0.02)

0.15

Entergy Nuclear

-

-

-

-

-

-

Non-Nuclear Wholesale Assets

-

-

-

-

-

-

Consolidated Special Items

0.11

(0.01)

0.12

0.13

(0.02)

0.15

Operational

Utility, Parent & Other

0.89

1.06

(0.17)

1.41

1.49

(0.08)

Entergy Nuclear

0.30

0.27

0.03

0.69

0.63

0.06

Non-Nuclear Wholesale Assets

0.03

0.01

0.02

0.02

0.01

0.01

Consolidated Operational Earnings

1.22

1.34

(0.12)

2.12

2.13

(0.01)

Weather Impact

0.07

-

0.07

0.01

(0.01)

0.02

Detailed earnings variance analyses are included in appendices B-1 and B-2 to this release. In addition, appendix B-3 provides details of special items shown in Table 2 above.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy's net cash flow provided by operating activities in second quarter 2006 was $468 million compared to $276 million in second quarter 2005. The increase was due primarily to:

  • Collections of nearly $220 million of deferred fuel balances at Utility, Parent & Other and the absence of $90 million of rate refunds distributed in second quarter 2005 pursuant to a regulatory settlement in Louisiana, partially offset by non-capital storm spending and income tax refunds distributed within the Entergy system.
  • Higher net revenue of approximately $25 million due to higher prices and incremental generation at Entergy Nuclear and receipt of income tax refunds distributed within the Entergy system.

 

Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarter-to-quarter and year-to-date comparisons.

Table 3: Consolidated Net Cash Flow Provided by Operating Activities

Second Quarter and Year-to-Date 2006 vs. 2005

(U.S. $ in millions)

Second Quarter

Year-to-Date

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

271

179

92

1,091

550

541

Entergy Nuclear

260

104

156

473

235

238

Non-Nuclear Wholesale Assets

(63)

(7)

(56)

(84)

(12)

(72)

Total Net Cash Flow Provided by Operating Activities

468

276

192

1,480

773

707

 

II. Utility, Parent & Other Results

In second quarter 2006, Utility, Parent & Other had earnings of $1.00 per share on an as-reported basis and $0.89 per share on an operational basis compared to $1.05 per share on an as-reported basis and $1.06 on an operational basis in second quarter 2005. As-reported 2006 earnings reflect $0.11 per share in special items, including earnings at Entergy New Orleans, Inc. (ENOI) of $0.05 per share. Both second quarter 2006 and 2005 special items include the operating loss from the competitive retail business in Texas, which was $(0.02) per share in the current period and $(0.01) per share in second quarter 2005. Entergy sold its customer base in the retail business in April 2006 and special items for second quarter 2006 include the gain on that sale in the amount of $0.08 per share.

Earnings for Utility, Parent & Other in second quarter 2006, excluding ENOI, primarily reflect lower unbilled revenues compared to second quarter 2005 and higher interest expense due to debt incurred to pay for storm restoration costs for Hurricanes Katrina and Rita. Partially offsetting these factors were the effects of constructive rate actions over the past year, lower operation and maintenance expense and income tax expense, as well as warmer-than-normal weather.

Electricity usage excluding ENOI, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:

 

  • Residential sales in second quarter 2006, on a weather-adjusted basis, were up 2 percent compared to second quarter 2005.
  • Commercial and governmental sales, on a weather-adjusted basis, were also up 2 percent.
  • Industrial sales experienced a decrease of 1 percent in second quarter 2006 compared to the same period a year ago.

The increases in the residential segment and the commercial and governmental segment reflect growth in all jurisdictions other than Entergy Louisiana where the continuing impact of last year's storms resulted in lower sales in the current quarter compared to a year ago. The quarter over quarter decline in the industrial sector reflects the negative impact of high energy prices and a continuing storm-related effect. While only one large industrial customer remains out of service, lingering outages in the pipeline sector and high energy prices continue to negatively affect electricity sales to chemical manufacturing customers of Entergy Louisiana and Entergy Gulf States - LA.

ENOI results for second quarter 2006 are being treated as a special item. As such, its results are included in Utility, Parent & Other as-reported earnings but are excluded from operational earnings. For second quarter 2005 Utility, Parent & Other results include ENOI on both as-reported and operational bases. Also, ENOI is de-consolidated for both second quarter 2006 and second quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations provided above exclude the revenues and expenses of ENOI.

ENOI results for second quarter 2006 reflect earnings of $0.05 per share. In second quarter 2005, ENOI earned $0.04 per share. Second quarter 2005 results reflect a normal operating environment for ENOI where results were primarily driven by margin on sales to retail customers. However, as a result of Hurricane Katrina, and the subsequent filing by ENOI for reorganization under Chapter 11 of the U.S. Bankruptcy Code, second quarter 2006 results reflect the ongoing impact of the hurricane as well as certain actions taken by ENOI specific to its continuing effort to recover financially from this storm. Results for the current period include significantly lower revenues from customers due to extended outages and customer losses partially offset by lower operation and maintenance expense due to the continued focus on storm restoration rather than routine operating activities, and ongoing cost reduction initiatives. In addition, net wholesale revenue is materially higher in the current quarter due to an increase in energy available for sales for resale due to the lower retail usage caused by Hurricane Katrina. Current results also reflect lower interest expense due to the cessation of interest accruals on first mortgage bonds as a result of an agreement among bondholders and ENOI in the Chapter 11 bankruptcy proceeding. Lastly, results reflect lower taxes other than income taxes due primarily to reduced franchise tax associated with reductions in overall revenue.

Table 4 provides a comparative summary of the Utility's operational performance measures.

Table 4: Utility Operational Performance Measures excluding Entergy New Orleans

Second Quarter and Year-to-Date 2006 vs. 2005 (see appendix G for definitions of measures)

 

Second Quarter

Year-to-Date

 

2006

2005

% Change

% Weather Adjusted

2006

2005

% Change

% Weather Adjusted

GWh billed

  Residential

7,034

6,557

7.3%

2.1%

13,997

13,728

2.0%

2.2%

  Commercial and governmental

6,438

6,113

5.3%

2.3%

12,354

11,966

3.2%

2.2%

  Industrial

9,561

9,649

-0.9%

-0.9%

18,614

19,100

-2.5%

-2.5%

  Total Retail Sales

23,033

22,319

3.2%

0.8%

44,964

44,794

0.4%

0.2%

  Wholesale

2,816

2,944

-4.3%

5,577

5,627

-0.9%

  Total Sales

25,849

25,262

2.3%

50,541

50,422

0.2%

O&M expense

$16.32

$16.69

-2.2%

$15.84

$15.55

1.9%

Number of retail customers (a)

  Residential

2,131,286

2,135,694

-0.2%

  Commercial and governmental

318,788

317,586

0.4%

  Industrial

44,959

44,194

1.7%

(a) Customer count data reflects estimates of customers in the hardest hit areas affected by Hurricane Katrina.  Issues associated with temporary housing and resumption of service at permanent dwellings render precise counts difficult at this time.

Appendix C provides information on selected pending local and federal regulatory cases.

III. Competitive Businesses Results

Entergy's competitive businesses include Entergy Nuclear and Non-Nuclear Wholesale Assets. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward.

Entergy Nuclear has sold 91%, 94%, and 66% of planned generation at average prices per megawatt-hour of $41, $49 and $53, for the remainder of 2006, 2007 and 2008, respectively. Non-Nuclear Wholesale Assets has contracted for 20%, 20% and 22% of its planned energy and capacity revenues at average prices per megawatt-hour of $22, $27 and $27, for the same periods.

Table 5: Competitive Businesses Capacity and Generation Sold Forward

Remainder of 2006 through 2010 (see appendix G for definitions of measures)

Third-Fourth Quarter 2006

2007

2008

2009

2010

Entergy Nuclear (b)

Energy

Planned TWh of generation

17

34

34

35

34

Percent of planned generation sold forward (c)

  Unit-contingent

34%

39%

34%

25%

12%

  Unit-contingent with availability guarantees

53%

47%

32%

13%

5%

  Firm liquidated damages

4%

8%

0%

0%

0%

  Total

91%

94%

66%

38%

17%

Average contract price per MWh (d)

$41

$49

$53

$58

$46

Capacity

Planned net MW in operation

4,200

4,200

4,200

4,200

4,200

Percent of capacity sold forward

  Bundled capacity and energy contracts

13%

12%

12%

12%

12%

  Capacity contracts

77%

48%

36%

24%

3%

  Total

90%

60%

48%

36%

15%

Average capacity contract price per kW per month

$1.1

$1.1

$1.1

$1.0

$0.9

Blended Capacity and Energy Recap (based on revenues)

Percent of planned energy and capacity sold forward

86%

88%

57%

33%

11%

Average contract revenue per MWh (d)

$42

$50

$53

$59

$46

 

Non-Nuclear Wholesale Assets

Capacity

Net MW in operation

1,578

1,578

1,578

1,578

1,578

Percent of capacity sold forward

29%

29%

29%

19%

17%

Energy

Planned TWh of generation

2

4

4

4

4

Percent of planned generation sold forward

  Unit-contingent

5%

6%

6%

6%

6%

  Unit-contingent with availability guarantees

35%

31%

33%

29%

29%

  Firm liquidated damages

0%

0%

0%

0%

0%

  Total

40%

37%

39%

35%

35%

Blended Capacity and Energy Recap (based on revenues)

Percent of planned energy and capacity sold forward

20%

20%

22%

16%

16%

Average contract revenue per MWh

$22

$27

$27

$21

$20

 

b.  Table excludes Palisades.

c.A portion of EN's total planned generation sold forward is associated with the Vermont Yankee contract for which pricing may be adjusted. The average contract price in 2010 substantially reflects the sold forward position at Vermont Yankee.

d. Average contract prices exclude potential payments that may be owed under the value sharing agreement with the New York Power Authority.

Entergy Nuclear

Entergy Nuclear earned $0.30 per share on both as-reported and operational bases in second quarter 2006, compared to $0.27 in second quarter 2005. The improved results in second quarter 2006 came from a combination of higher pricing as well as increased generation available due to the Vermont Yankee uprate. Partially offsetting these contributions was higher operation and maintenance expense due to higher refueling outage expenses. Another offsetting factor to the higher results this quarter was the effect of refueling outages on available generation output. The total number of refueling days was essentially the same on a quarter to quarter basis. However, the outage in second quarter 2006 was at a larger unit, Indian Point 2, while most of the outage days in second quarter 2005 were at a smaller unit, Pilgrim.

Table 6 provides a comparative summary of EN's operational performance measures.

Table 6: Entergy Nuclear Operational Performance Measures

Second Quarter and Year-to-Date 2006 vs. 2005 (see appendix G for definitions of measures)

 

Second Quarter

Year-to-Date

 

2006

2005

% Change

2006

2005

% Change

Net MW in operation

4,200

4,105

2%

4,200

4,105

2%

Average realized price per MWh

$43.93

$42.63

3%

$44.16

$42.09

5%

Production cost per MWh

$19.80

$19.22

3%

$19.43

$18.96

2%

Non-fuel O&M expense per MWh

$21.56

$20.39

6%

$20.62

$20.21

2%

Generation in GWh

8,249

8,156

1%

16,990

16,422

3%

Capacity factor

90%

91%

-1%

94%

92%

2%

Refueling outage days:

  Indian Point 2

31

-

31

-

  Indian Point 3

-

6

-

26

  Pilgrim

-

25

-

25

Non-Nuclear Wholesale Assets

Entergy's Non-Nuclear Wholesale Assets business earned $0.03 per share on both as-reported and operational bases in second quarter 2006. As-reported and operational results in second quarter 2005 were $0.01 per share. The improved results were primarily attributable to the planned monetization in the current period of Entergy's interest in a power development project.

IV. Earnings Guidance

Entergy is reaffirming as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share and operational earnings guidance of $4.50 to $4.80 per share. Earnings guidance ranges exclude ENOI given the uncertainty that remains for this business as it works toward filing a plan of reorganization. During 2006, actual results for ENOI are being separately identified as a special item for earnings release purposes.

Entergy's 2006 guidance was established in January 2006 based on a number of assumptions as detailed below. Among them was normal weather for the Utility, and a then-current average spot electricity price of $83/MWh for the unsold portion of Entergy Nuclear's 2006 generation. During second quarter, weather was warmer-than-normal and spot electricity prices averaged $57/MWh. Published market prices for the second half of 2006 averaged $76/MWh at the end of July. These and other factors can exceed or fall short of guidance mid-point assumptions but when combined, continue to support Entergy's overall guidance range.

Guidance ranges for 2006 are based on the following key assumptions that were established in January 2006:

Utility, Parent & Other

  • Normal weather
  • Sales growth of approximately 4%, weighted in the months September - December 2006 due to absence of 2005 hurricane effect
  • Non-storm related rate actions, including carryover effects of 2005 rate actions and 2006 rate action for Attala
  • Increased non-fuel operation and maintenance expense, including effects of inflation, benefits costs, supply plan, and Independent Coordinator of Transmission implementation along with the absence of 2005 offsets relating to storm restoration work
  • Increased interest expense from higher financing requirements

Entergy Nuclear

  • 35 TWh of total output, reflecting an approximate 94% capacity factor, including 30 day refueling outages at Indian Point 2 (spring 2006) and FitzPatrick (fall 2006) and implementation of 95 MW uprate at Vermont Yankee at end of first quarter 2006
  • 91% energy sold under existing contracts; 9% sold into the spot market
  • $41/MWh average energy contract price, average price of $83/MWh for unsold energy based on published market prices in January 2006
  • $20.50/MWh non-fuel operation and maintenance expense reflecting inflation and higher benefits expense; $19/MWh production cost
  • Increased interest expense due to increased collateral requirements driven by higher market prices
  • Increased depreciation and other expenses

Non-Nuclear Wholesale Assets

  • Reduced sales of emissions allowances
  • Increased year over year losses

Special Items

  • Receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
  • Absence of 2005 results from discontinued competitive retail operation (a 2006 estimate is not presented as ultimate amount depends on timing of sale)

Share Repurchase Program

  • End of year fully diluted shares outstanding of approximately 213 million

The above assumptions assume no regulatory disallowances are ordered by retail regulators for the estimated $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items.

Earnings guidance details are provided in Table 7. This table demonstrates why 2006 results are expected to differ from 2005 based on the quantification of assumptions described above. For presentation simplicity purposes, year-over-year changes are shown as point estimates and are applied to 2005 actuals to compute the 2006 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans.

Table 7: 2006 Earnings Per Share Guidance excluding Entergy New Orleans

(Per share in U.S. $) - Prepared January 2006

 

Segment

 

Description of Drivers

2005
Earnings
 per Share


Expected Change

2006
Guidance
Midpoint

2006 Guidance Range

Utility, Parent & Other

2005 Operational Earnings per Share

3.03

Adjustment to normalize weather

(0.10)

Increased revenue due to non-storm rate actions and sales growth

0.50

Increased O&M expense

(0.25)

Increased interest expense

(0.10)

Other

(0.03)

Subtotal

3.03

0.02

3.05

Entergy Nuclear

2005 Operational Earnings per Share

1.32

Higher contract and market energy pricing

0.42

Increased generation from uprates and fewer outages

0.10

Increased O&M expense

(0.10)

Increased interest expense

(0.05)

Increased depreciation and other

(0.09)

Subtotal

1.32

0.28

1.60

Non-Nuclear Wholesale Assets

2005 Operational Earnings per Share

0.05

Reduced sales of emissions allowances

(0.04)

Increased losses from Non-Nuclear Wholesale Assets

(0.01)

Subtotal

0.05

(0.05)

0.00

Consolidated Operational

2006 Operational Earnings per Share

4.40

0.25

4.65

4.50 - 4.80

Consolidated As-Reported

2005 As Reported Earnings per Share

4.19

Changes detailed above

0.25

Special items:

2006 Gain on sale of Entergy-Koch, LP

0.28

2005 results from discontinued competitive retail operation,
  including impairment loss

0.21

2006 As-Reported Earnings per Share

4.19

0.74

4.93

4.78 - 5.08

Earnings guidance should be considered in association with earnings sensitivities as shown in Table 8. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales are expected to be the most significant driver of results in 2006 for Utility, Parent & Other due to normal growth in customer usage and the recovery of some portion of load impacted by hurricanes. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2006, given the size of EN's unsold position. In 2005, Entergy modified its contracting strategy to provide the flexibility to retain a larger unsold position. This modification provides EN the opportunity to capture higher spot market prices. Increased volatility of expected results was considered as well. Estimated annual impacts shown in the Table 8 are intended to be indicative rather than precise guidance.

Table 8: Earnings Sensitivities excluding Entergy New Orleans

(Per share in U.S. $)



Variable



2006 Guidance Assumption



Description of Change

Estimated Annual Impact (e)

Utility, Parent & Other

Sales growth
  Residential
  Commercial/Governmental
  Industrial
  Total


Approximately 4% total sales growth weighted in Sept.-Dec. 2006


1% change in Residential MWh sold
1% change in Comm/Govt MWh sold
1% change in Industrial MWh sold
1% change in Total MWh sold


- / + 0.04
- / + 0.03
- / + 0.03
- / + 0.10

Extended outages for Entergy Louisiana customers

31,000 customers of Entergy Louisiana

10,000 return to service

n/a / + 0.03

Rate base

Stable rate base

$100 million change in rate base

- / + 0.02

Return on equity

See Appendix C

1% change in allowed ROE

- / + 0.28

Interest expense

Additional $550M average debt at 6% average interest rate

$100M change in debt

- / + 0.02

Entergy Nuclear

Capacity factor

94% capacity factor

1% change in capacity factor

- / + 0.04

Energy price

9% energy unsold at $83/MWh in 2006

$10/MWh change for unsold energy

- / + 0.09

Non-fuel operation and maintenance expense

$20.50/MWh non-fuel operation and maintenance expense

$1 change per MWh

- / + 0.10

Outage (lost revenue only)

94% capacity factor, including refueling outages at Indian Point 2 and FitzPatrick

1,000 MW plant for 10 days at average portfolio energy price of $41/MWh for sold and $83/MWh for unsold volumes in 2006

- 0.03 / n/a

       

  1. Based on 2005 average fully diluted shares of approximately 214 million.

V. Forward-looking Financial Data and Aspirations

Entergy continues to focus on recovery in the aftermath of hurricanes that severely affected its business operations in August and September of 2005. While these storms created issues that may affect near-term financial performance, the company's long-term aspirations remain intact. Specifically, Entergy aspires to deliver average annual earnings per share growth of 5-6%, to achieve a 9% return on invested capital, and to continue to improve the company's overall credit quality over the long-term. The company's ability to achieve these aspirations over time will be based upon a combination of factors. These include, but are not limited to, intrinsic growth, the recovery of storm-related restoration costs, the return of customers and load to portions of the Entergy service territory that have been severely damaged and further impacted by new flood maps and more stringent building codes, and the amount of cash that is available for capital deployment in investments, share repurchases, dividends or debt retirement.

Table 9 provides details on Entergy's projected cash available for capital redeployment for the period 2006 through 2008 excluding Entergy New Orleans. Entergy expects to have $1.9 billion of cash available over this period for several potential uses: investments in new businesses or assets, repayment of debt or equity, or dividend increases. Sources of cash do not include storm recovery initiatives, such as insurance, regulatory rate relief, or funding through community development block grants because they are too preliminary or uncertain at this time. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining a net debt ratio of 50% or less. The amount of additional debt could vary depending upon the type of new investment and the credit market environment. Uses of cash shown on the table reflect current estimates of storm restoration spending and share repurchases based on resumption of the $1.5 billion share repurchase program approved in 2004. The amount of repurchases may vary as a result of material changes in business results or capital spending or material new investment opportunities.

Table 9: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans
2006 through 2008 - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of measures)

($ in billions)

2006-2008

Net cash flow provided by operating activities

7.3

Less:

  Net nuclear fuel purchases

(0.4)

  Net change in decommissioning trust funds

(0.4)

  Planned capital expenditures

(3.6)

  Preferred dividends

(0.1)

Free cash flow

2.8

Common dividends

(1.5)

Net share repurchases (includes repurchases under existing program net of equity units conversion and remaining sale proceeds)

0.2

Additional debt capacity (net of maturities)

0.8

Net impact of Palisades acquisition

(0.4)

Net Cash Available for New Investment, Debt or Equity Repayment, Dividend Increase

1.9

Appendix E provides details on planned capital expenditures by business, and appendix F includes a summarized schedule of debt maturities.

 

VI. Appendices

Eight appendices are presented in this section as follows:

  • Appendix A includes information on Entergy New Orleans, Inc.'s filing for protection under Chapter 11 of the U.S. Bankruptcy Code.
  • Appendix B includes earnings per share variance analyses and details on special items that relate to the current quarter and year to date periods.
  • Appendix C provides information on selected pending local and federal regulatory cases.
  • Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
  • Appendix E provides a summary of planned capital expenditures for the next three years.
  • Appendix F provides a summary schedule of Entergy Corporation's debt maturities by business.
  • Appendix G provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
  • Appendix H provides a reconciliation of GAAP to non-GAAP financial measures used in this release.

 

Appendix A provides information on the petition filed by Entergy New Orleans, Inc. for protection under Chapter 11 of the U.S. Bankruptcy Code as well as related activities subsequent to the initial filing.

Appendix A: Entergy New Orleans, Inc. Bankruptcy

Bankruptcy Filing

To protect its franchise agreement with the City and ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans, Inc. (ENOI) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Important decisions were rendered by the bankruptcy court in December 2005 when the court authorized the debtor-in-possession (DIP) financing (described below), approved the priming lien for DIP financing, and ordered that use of insurance proceeds would be determined by ENOI. Numerous motions have been filed with additional motions expected as the bankruptcy proceeding continues. ENOI's exclusivity period for filing a final plan of reorganization was August 21, 2006. In response to a motion by ENOI this filing has been extended by the bankruptcy court pending a hearing set for September 18, 2006. In its motion ENOI has requested that the filing deadline for the reorganization plan be extended to December 19, 2006 with solicitation of acceptances of the plan to be completed by February 15, 2007. ENOI appeared at status conferences on June 26, 2006 and July 26, 2006 to provide progress reports to the bankruptcy court on the restructuring plan. For more information on documents filed in this proceeding go to www.entergy.com/investor_relations/enoi.aspx.

Debtor-in-Possession Financing

On September 26, 2005, ENOI, as borrower, and Entergy Corporation, as lender, entered into the DIP credit agreement, a debtor-in-possession credit facility to provide funding to ENOI during its business restoration efforts. On December 9, 2005, the bankruptcy court issued its final order approving the DIP Credit Agreement. The indenture trustee of ENOI's first mortgage bonds appealed the final order. Subsequent to the indenture trustee filing its notice of appeal, ENOI, Entergy Corporation, and the indenture trustee filed with the bankruptcy court a motion to approve a settlement among the parties. On March 29, 2006, the bankruptcy court approved the settlement, and the indenture trustee dismissed its appeal. The facility enables ENOI to request funding from Entergy Corporation, but the decision to lend money is at the sole discretion of Entergy Corporation. Entergy Corporation and ENOI have entered into an agreement to extend the terms of the DIP credit agreement through August 23, 2007, and ENOI has filed a motion with the bankruptcy court to authorize it to enter into such amendment. The hearing on the motion is set for August 16, 2006.

Accounting

Entergy owns 100 percent of the common stock of ENOI and has, subject to the rules and requirements of Chapter 11 of the U.S. Bankruptcy Code, continued to supply operating management to ENOI. However, uncertainties surrounding the nature, timing and specifics of the bankruptcy proceedings caused Entergy to de-consolidate ENOI for financial reporting purposes beginning in third quarter 2005 with ENOI's financial results being recorded under the equity method of accounting. Under this methodology, earnings from ENOI are now reflected in Entergy's income statement as equity in the earnings of unconsolidated affiliates.  Because Entergy owns all of the common stock of ENOI, this change has not impacted the amount of net income Entergy has recorded in the current period or any historical period but has resulted in ENOI's net income being presented in one line item rather than included in each individual income statement line item presented. Various line items of Entergy's consolidated balance sheet and cash flow statement have been revised to reflect the impact of de-consolidating ENOI. In addition, the deconsolidation of ENOI's results is retroactive to January 1, 2005 and Entergy's comparative results now reflect ENOI results under the equity method of accounting.

 

Appendix B-1 provides details of second quarter and year-to-date 2006 vs. 2005 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."

Appendix B-1: As-Reported Earnings Per Share Variance Analysis

Second Quarter 2006 vs. 2005

(Per share in U.S. $, sorted in consolidated

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2005 earnings

1.05

0.28

1.33

Retail business discontinued operations

0.07

(f)

-

0.07

Income taxes - other

0.06

(g)

(0.03)

0.03

Share repurchase effect

0.02

0.01

0.03

Taxes other than income taxes

0.01

-

0.01

Net revenue

(0.12)

(h)

0.12

(i)

-

Other income (deductions)

0.01

(0.01)

-

Nuclear refueling outage expense

(0.01)

-

(0.01)

Preferred dividend requirements

(0.01)

-

(0.01)

Depreciation/amortization expense

(0.03)

-

(0.03)

Other operation & maintenance expense

0.02

(0.06)

(j)

(0.04)

Interest expense and other charges

(0.07)

(k)

0.02

(0.05)

2006 earnings

1.00

0.33

1.33

Appendix B-2: As-Reported Earnings Per Share Variance Analysis

Year-to-Date 2006 vs. 2005

(Per share in U.S. $, sorted in consolidated

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2005 earnings

1.47

0.64

2.11

Net revenue

0.07

(h)

0.25

(i)

0.32

Retail business discontinued operations

0.07

(f)

-

0.07

Share repurchase effect

0.04

0.02

0.06

Interest and dividend income

0.04

-

0.04

Income taxes - other

0.01

-

0.01

Decommissioning expense

0.01

(0.01)

-

Nuclear refueling outage expense

(0.01)

-

(0.01)

Depreciation/amortization expense

(0.01)

-

(0.01)

Preferred dividend requirements

(0.01)

-

(0.01)

Taxes other than income taxes

(0.01)

(0.01)

(0.02)

Other income (deductions)

0.02

(0.10)

(l)

(0.08)

Interest expense and other charges

(0.14)

(k)

0.03

(0.11)

Other operation & maintenance expense

(0.01)

(0.11)

(j)

(0.12)

2006 earnings

1.54

0.71

2.25

  1. Reflects for both the quarter and year-to-date periods results of retail business operations including the gain on the sale of this business during second quarter 2006.
  2. Utility Net Revenue Variance Analysis 2006 vs. 2005
    ($ EPS)

    Second Quarter

    Year-to-Date

    Weather

    0.07

    Weather

    0.02

    Sales growth/pricing

    0.06

    Sales growth/pricing

    0.16

    Other

    (0.25)

    Other

    (0.11)

    Total

    (0.12)

    Total

    0.07

  3. Income taxes-other decreased in second quarter 2006 due primarily to benefits recorded in connection with flow through accounting and the favorable resolution of a tax audit issue. These items were partially offset by the absence in the current period of tax benefits from the American Jobs Creation Act of 2004 recorded in second quarter last year.
  4. Net revenue decreased in second quarter 2006 compared to the same period a year ago due primarily to lower unbilled revenue partially offset by the effect of constructive rate actions in 2005 and early 2006 and warmer-than-normal weather. The year-to-date increase in net revenue was due primarily to the effect of constructive rate actions in 2005 and early 2006 partially offset by lower unbilled revenue in the current period.
  5. Net revenue increased in the quarter and year-to-date periods due primarily to higher revenues at Entergy Nuclear due to higher pricing and the effect of the Vermont Yankee uprate. In addition, the planned monetization of Entergy's interest in a power development project increased revenues as well.
  6. Other operation and maintenance expense increased in the current quarter and on a year-to-date basis due primarily to higher nuclear refueling outage expenses at Entergy Nuclear as well as increased spending at the Non-Nuclear Wholesale Assets business.
  7. Interest expense and other charges increased in both the quarter and year-to-date periods due primarily to higher borrowings under credit lines and long-term debt primarily in connection with financing of significant 2005 storm restoration costs.
  8. Other income (deductions) decreased due primarily to the absence of an adjustment made to the decommissioning liability at Entergy Nuclear in early 2005.

 

Appendix B-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.

 

Appendix B-3: Special Items (shown as positive / (negative) impact on earnings)

Second Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Second Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

  ENOI results (m)

0.05

-

0.05

0.08

-

0.08

  Retail business discontinued operations

(0.02)

(0.01)

(0.01)

(0.03)

(0.02)

(0.01)

  Gain on sale - retail business

0.08

-

0.08

0.08

-

0.08

     Total Utility, Parent and Other

0.11

(0.01)

0.12

0.13

(0.02)

0.15

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Non-Nuclear Wholesale Assets

-

-

-

-

-

-

     Total Competitive Businesses

-

-

-

-

-

-

Total Special Items

0.11

(0.01)

0.12

0.13

(0.02)

0.15

(U.S. $ in millions)

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

  ENOI results (m)

10.7

-

10.7

16.3

-

16.3

  Retail business discontinued operations

(4.0)

(2.8)

(1.2)

(6.2)

(4.2)

(2.0)

  Gain on sale - retail business

17.1

-

17.1

17.1

-

17.1

     Total Utility, Parent and Other

23.8

(2.8)

26.6

27.2

(4.2)

31.4

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Non-Nuclear Wholesale Assets

-

-

-

-

-

-

     Total Competitive Businesses

-

-

-

-

-

-

Total Special Items

23.8

(2.8)

26.6

27.2

(4.2)

31.4

             

(m) ENOI results for the quarterly and year-to-date periods of 2005 are included in operational earnings.

Appendix C provides a summary of selected regulatory cases and events that are pending.

Appendix C: Regulatory Summary Table

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy Arkansas

11.00%

Recent activity: Pursuant to an APSC order, EAI filed a current cost-of-service study on June 7, 2006 for test year ending June 30, 2005. The filing also included supporting testimony addressing the APSC's elimination of Energy Cost Recovery Rider (ECR). At that time, EAI also filed notice of its intent to file a general rate proceeding within 60-90 days. On June 29, the APSC approved the implementation of the annual revised energy cost rate previously suspended effective for July billing. A hearing on ECR matters is scheduled for October 12, 2006.
Background: EAI's base rates and the ECR have been in effect since 1998.  In December 2005, EAI provided notice of its intent to terminate participation in the Entergy System Agreement, following a final order from FERC establishing terms under which EAI may be required to make payments to other operating companies to achieve rough production cost equalization.

     

Entergy Gulf States - TX

10.95%

Recent activity: On June 7, 2006, the PUCT approved a settlement in the Transition to Competition Cost recovery case, allowing EGSI-TX to recover $14.5 million per year in TTC costs over a 15-year period. EGSI-TX implemented interim rates based on this revenue level on March 1.
Background: EGSI-TX has operated under a base rate freeze since 1999. Legislation subsequently enacted in June 2005 extends the base rate freeze to mid 2008 but also allows EGSI-TX to file for rate relief through riders for incremental capacity costs and transition costs. In December 2005, the PUCT approved the recovery of $18 million annually beginning in December 2005 for capacity costs, subject to reconciliation from September 2005.
Storm Cost Recovery: Legislation enabling the securitization of Hurricane Rita restoration costs was signed into law by the Governor on May 31, 2006. The legislation allows for EGSI-TX to file a case to identify the appropriate level of hurricane reconstruction costs to be securitized. EGSI-TX initiated its storm recovery case on July 5, 2006 indicating $393 million of Hurricane Rita costs incurred through March 31, 2006. Pursuant to legislation, the PUCT has 150 days (December 4, 2006) to issue an order determining the amount of hurricane restoration costs eligible for recovery and securitization.

     

Entergy Gulf States - LA

9.90% - 11.40%

Recent activity: In May 2006, EGSI-LA made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 11.10% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $7.1 million to recover Commission approved deferred and ongoing capacity costs.
Background: In March 2005, the LPSC approved a Global Settlement which established an FRP with a 10.65% ROE midpoint and a +/- 75 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company.
Storm Cost Recovery: Pursuant to the LPSC order, in April 2006, EGSI-LA completed the $6 million interim recovery of storm costs through the fuel adjustment clause. In September until a final storm recovery Order is issued, interim recovery of $0.85 million per month will be included in base rates. On July 31, 2006, EGSI-LA made its Phase II storm filing for costs incurred through May 31, 2006. The filing seeks recovery of $200 million in storm costs and to build a storm reserve in the amount of $81 million. EGSI-LA intends to seek securitization pursuant to the bill signed into law by the Governor in May 2006.

     

Entergy Louisiana

9.45% - 11.05%

Recent activity: In May 2006, ELL made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 9.45% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $121 million to recover Commission approved deferred and ongoing capacity costs. ELL has proposed to amortize deferred capacity costs over a three-year period which creates a $51 million annual revenue requirement. Ongoing annual capacity costs total approximately $70 million.
Background: In May 2005, the LPSC approved a settlement reestablishing the Company's FRP with a 10.25% ROE midpoint and a +/- 80 basis point bandwidth and a recovery mechanism for Commission-approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company.
Storm Cost Recovery: Pursuant to the LPSC order, in May 2006, ELL completed the $14 million interim recovery of storm costs through the fuel adjustment clause. Beginning in September until a final storm recovery Order is issued, interim recovery of $2 million per month will be included in base rates. On July 31, 2006, ELL made its Phase II storm filing for costs incurred through May 31, 2006. The filing seeks recovery of $467 million in storm costs and to build a storm reserve in the amount of $132 million. ELL intends to seek securitization pursuant to the bill signed into law by the Governor in May 2006.

Entergy Mississippi

9.74% - 12.44%

Recent activity: In April 2006, EMI submitted its 2005 evaluation report that reflected an Earned Rate of Return of 9.35%, resulting in a revenue deficiency. On June 30, 2006, EMI and the Public Utilities Staff filed a Joint Stipulation with the MPSC that resulted in a rate increase of approximately $2 million. The MPSC approved the Joint Stipulation on August 1, 2006 to become effective with August 2006 billings. In December 2005, EMI received an order from MPSC approving purchase of the Attala facility and authorizing interim recovery. EMI intends to make an appropriate filing with the MPSC in 2006 to extend recovery in rates of the Company's Attala costs beyond 2006.
Background: EMI has been operating under a formula rate plan last approved in December 2002. The FRP allows the company's earned ROE to increase or decrease within a bandwidth with no change in rates; earnings outside the bandwidth are allocated 50% to customers and 50% to the company, but on a prospective basis only. The plan also provides for performance incentives that can increase or decrease the benchmark ROE by as much as 100 basis points. The current mid-point of the ROE bandwidth, including performance incentives, is 11.09%.
Storm Cost Recovery: On June 28, 2006, the MPSC issued an Order approving $89 million of the Company's Hurricane Katrina storm restoration costs incurred through March 31, 2006 and certified that amount as eligible for CDBG funding. On June 30, 2006, EMI filed with the MPSC a Petition for Financing Order as provided for by the Securitization Act including a request for an $80 million storm reserve. Also on June 30, the Company filed an application with the Mississippi Development Authority seeking CDBG funding as certified by the MPSC June 28 Order. A hearing is scheduled for October 3, 2006.

 

 

Appendix C: Regulatory Summary Table (continued)

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy New Orleans

9.75% - 11.75% (electric)
10.25% - 11.25%
(gas)
10.75% in 2006 with no bandwidth (gas)

Recent activity: On June 30, 2006, ENOI filed three Electric and two Gas FRP Evaluation Reports. ENOI's recommended alternative adjusts for lost customers and assumes that the City Council's June 06 decision to allow recovery of all Grand Gulf costs through the fuel adjustment clause remains in place. The recommended alternative increases base rates $6.4 million for Electric (4.4%) and $22.8 million for Gas (160.9%).
Background:  In September 2005, the City Council of New Orleans approved a two year extension of ENOI's FRP with a ROE mid-point of 10.75%, a 45% hypothetical equity ratio, and electric and gas ROE bandwidths of 100 and 50 basis points, respectively. The Council's order temporarily suspended the Generation Performance-Based Rate (G-PBR) due to effects from Hurricane Katrina.
Storm Cost Recovery: On June 30, 2006, ENOI filed an Electric and Gas Storm Cost Recovery Rider seeking recovery of $139 million (Electric $114 million, Gas $25 million) over a ten year period for costs incurred through March 31, 2006. ENOI proposed semiannual filings to update the rider for additional restoration spending. Also on June 30, ENOI requested an Electric and Gas Storm Reserve Rider to establish a $150 million (Electric $130 million, Gas $20 million) reserve for future storm costs over a ten year period.

Wholesale Regulation (FERC)

System Energy Resources, Inc.

10.94%

Recent activity: None
Background: ROE approved by July 2001 FERC order. No cases pending.

     

System Agreement

NA

Recent activity: On May 31, 2006, the APSC, LPSC, AEEC, Arkansas Attorney General filed comments or protests of Entergy's Compliance filing, and on June 7, 2006 the LPSC filed Request for Summary Disposition on issues relating to the timing of payments/receipts between the utility operating subsidiaries. Entergy has responded to the comments or protests to its Compliance filing and has urged FERC to reject the LPSC's request for summary judgment.
Background:
The system agreement case, originally filed in 2001, addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued a decision stating that rough production cost equalization did not exist in the Entergy system. The FERC established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively. In December 2005, FERC essentially denied requests for rehearing of its June 2005 order and established, among other things, that 1) the bandwidth would be applied to calendar year 2006 actual production costs and 2) 2007 would be the first possible year of payments among Entergy's operating companies. Appeals of this decision were filed by the APSC, LPSC, MPSC and AECC in the federal appeals court for the D.C. circuit. These appeals have been consolidated. The City of New Orleans intervened in the LPSC appeal, and Entergy has intervened in all appeals. A compliance filing to implement the FERC decision in this case was filed by Entergy at FERC on April 10, 2006 which proposed that all payments required by the June 2005 FERC decision be properly reflected as fuel costs.

     

Independent Coordinator of Transmission
(ICT)

 

NA

 

Recent activity: On May 24, 2006, Entergy filed (1) a Compliance filing to implement provisions of FERC's April 2006 Order, (2) the ICT contract, signed with SPP earlier in May, and (3) a request that SPP be installed as the ICT. The LPSC approved the ICT proposal on July 12, 2006 and implementation could begin in third quarter 2006.
Background: Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of its Independent Coordinator of Transmission (ICT) in May 2005. On April 24, 2006 the FERC approved Entergy's ICT proposal with modification.

Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with generally accepted accounting principles (GAAP), as well as those that are considered non-GAAP measures.

As-reported measures are computed in accordance with GAAP as they include all components of earnings, including special items. Operational measures are non-GAAP measures as they are calculated using operational earnings, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided in Appendix H-1.

Appendix D-1: GAAP and Non-GAAP Financial Performance Measures

Second Quarter 2006 vs. 2005 (see appendix G for definitions of certain measures)

For 12 months ending June 30

2006

2005

Change

GAAP Measures

Return on average invested capital - as-reported

7.3%

7.1%

0.2%

Return on average common equity - as-reported

11.3%

10.7%

0.6%

Net margin - as-reported

8.5%

9.5%

(1.0)%

Cash flow interest coverage

5.2

7.1

(1.9)

Book value per share

$39.45

$37.87

$1.58

End of period shares outstanding (millions)

208.1

209.9

(1.8)

Non-GAAP Measures

Return on average invested capital - operational

7.4%

7.2%

0.2%

Return on average common equity - operational

11.5%

10.8%

0.7%

Net margin - operational

8.6%

9.5%

(0.9)%

As of June 30 ($ in millions)

2006

2005

Change

GAAP Measures

Cash and cash equivalents

729

607

122

Revolver capacity

2,710

1,407

1,303

Total debt

9,402

8,283

1,119

Debt to capital ratio

52.4%

49.9%

2.5%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

152

216

(64)

Leases - Entergy's share

519

564

(45)

Total off-balance sheet liabilities

671

780

(109)

Non-GAAP Measures

Total gross liquidity

3,439

2,014

1,425

Net debt to net capital ratio

50.4%

48.0%

2.4%

Net debt ratio including off-balance sheet liabilities

52.2%

50.4%

1.8%

Appendix D-2: Historical Performance Measures (see appendix G for definitions of measures)

Financial

3Q04(n)

4Q04(n)

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

05YTD

06YTD

EPS - as-reported ($)

1.22

0.68

0.79

1.33

1.65

0.43

0.92

1.33

2.11

2.25

Less - special items ($)

-0.17

0.18

-0.01

-0.01

-0.03

-0.16

0.02

0.11

-0.02

0.13

EPS - operational ($)

1.39

0.50

0.80

1.34

1.68

0.59

0.90

1.22

2.13

2.12

Trailing Twelve Months

ROIC - as-reported (%)

5.9

7.3

7.0

7.1

7.5

7.2

7.3

7.3

ROIC - operational (%)

6.7

7.1

6.9

7.1

7.3

7.5

7.5

7.4

ROE - as-reported (%)

8.1

10.7

10.4

10.7

11.5

11.2

11.5

11.3

ROE - operational (%)

9.7

10.4

10.2

10.8

11.2

11.8

12.0

11.5

Cash Flow Interest Coverage

6.4

7.1

7.6

7.1

5.9

4.0

5.1

5.2

Debt to capital ratio (%)

46.8

47.4

49.0

49.9

51.9

53.1

52.1

52.4

Net debt/net capital ratio (%)

45.1

45.3

47.5

48.0

50.2

51.5

50.0

50.4

Utility

GWh billed

  Residential

10,738

7,521

7,170

6,557

10,630

7,212

6,963

7,034

13,728

13,997

   Commercial & Gov't

8,468

7,252

5,854

6,113

7,725

6,277

5,916

6,438

11,966

12,354

  Industrial

10,456

10,425

9,452

9,649

9,736

8,778

9,053

9,561

19,100

18,614

  Wholesale

2,040

1,799

1,728

2,944

2,227

1,549

1,555

2,816

5,627

5,577

O&M expense/MWh

$12.97

$17.44

$14.98

$16.69

$11.35

$17.43

$16.12

$16.32

$15.55

$15.84

Reliability

  SAIFI

1.8

1.9

1.5

1.8

1.8(o)

1.7(o)

1.8(o)

1.7(o)

1.7

1.7(o)

  SAIDI

159

169

136

157

158(o)

161(o)

174(o)

178(o)

155(o)

178(o)

Nuclear

Net MW in operation

4,001

4,058

4,058

4,105

4,105

4,105

4,135

4,200

4,105

4,200

Avg. realized price per MWh

$43.38

$40.69

$41.56

$42.63

$42.58

$42.75

$44.39

$43.93

$42.09

$44.16

Production cost/MWh

$21.68

$22.28

$18.71

$19.22

$20.14

$19.48

$19.08

$19.80

$18.96

$19.43

Non-fuel O&M expense/MWh

$22.83

$23.99

$20.03

$20.39

$20.32

$19.95

$19.74

$21.56

$20.21

$20.62

Generation in GWh

8,075

7,567

8,267

8,156

8,474

8,643

8,742

8,249

16,422

16,990

Capacity factor

92%

85%

93%

91%

95%

95%

97%

90%

92%

94%

  1. Data has not been restated for the de-consolidation of ENOI which was the accounting adopted by Entergy in third quarter 2005, retroactive to first quarter 2005.
  2. Excludes impact of major storm activity.

Appendix E provides a summary of planned capital expenditures. Entergy's capital plan from 2006 through 2008 includes $3.6 billion for investment; more than $2.2 billion of this amount is associated with capital to maintain Entergy's existing assets. Approximately $1.1 billion is associated with specific investments such as transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, and other investments, such as the purchase of the Attala plant, that support the utility's ability to meet load growth.

Appendix E: Planned Capital Expenditures excluding Entergy New Orleans

2006-2008

($ in millions)

2006

2007

2008

Total

Storm capital

310

-

-

310

Maintenance capital

       

  Utility, Parent & Other

604

713

719

2,036

  Entergy Nuclear

62

64

50

176

  Non-Nuclear Wholesale Assets

2

2

2

6

      Subtotal

668

779

771

2,218

Other capital commitments

       

  Utility, Parent & Other

277

203

301

781

  Entergy Nuclear

143

96

86

325

  Non-Nuclear Wholesale Assets

6

6

5

17

      Subtotal

426

305

392

1,123

Total Planned Capital Expenditures

1,404

1,084

1,163

3,651

Entergy New Orleans' planned capital expenditures for the years 2006-2008 total $165 million, including $72 million of storm capital. The above table does not reflect any capital expenditures, including the initial acquisition cost of $350 million, associated with Entergy's recent announcement of its agreement to acquire the Palisades nuclear unit.

Appendix F provides details on scheduled long-term debt maturities including currently maturing portions.

Appendix F: Debt Maturity Schedule excluding Entergy New Orleans

Maturities as of 6/30/2006

($ in millions)

2006

2007

2008

2009-2010

2011+

Total

Utility, Parent & Other

-

93

1,074

2,093

5,423

8,683

Entergy Nuclear

87

84

24

52

158

405

      Total

87

177

1,098

2,145

5,581

9,088

 

Appendix G provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures

Utility

GWh billed

Total number of GWh billed to all retail and wholesale customers

Operation & maintenance expense

Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel

SAIFI

System average interruption frequency index; average number per customer per year

SAIDI

System average interruption duration index; average minutes per customer per year

Number of customers

Number of customers at end of period

Competitive Businesses

Planned TWh of generation

Amount of output expected to be generated by Entergy Nuclear for nuclear units, or by Non-Nuclear Wholesale Assets for fossil and wind units, considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch

Percent of planned generation sold forward

Percent of planned generation output sold forward under contracts, forward physical contracts, forward financial contracts or options (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages

Unit-contingent with availability guarantees

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract

Firm liquidated damages (LD)

Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract

Planned net MW in operation

Amount of capacity to be available to generate power considering uprates planned to be completed within the calendar year

Bundled energy & capacity contract

A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold

Capacity contract

For Entergy Nuclear, a contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator
For the Non-Nuclear Wholesale Assets business, a contract for the sale of capacity and related energy, in which capacity and energy are priced separately

Average contract price per MWh or per kW per month

Price at which generation output and/or capacity is expected to be sold to third parties, given existing contract or option exercise prices based on expected dispatch or capacity

Average contract revenue per MWh

Price at which the combination of generation output and capacity are expected to be sold to third parties, given existing contract or option exercise prices based on expected dispatch

Entergy Nuclear

Net MW in operation

Installed capacity owned or operated by Entergy Nuclear

Average realized price per MWh

As-reported revenue per MWh generated for all non-utility nuclear operations

Production cost per MWh

Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh

Non-fuel O&M expense per MWh

Operation, maintenance and refueling expenses per MWh of generation, excluding fuel

Generation in GWh

Total number of GWh produced by all non-utility nuclear facilities

Capacity factor

Normalized percentage of the period that the plant generates power

Refueling outage duration

Number of days lost for scheduled refueling outage during the period

Financial measures defined in the below table include measures prepared in accordance with generally accepted accounting principles, (GAAP), as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of less routine financial impacts from commonly used financial metrics.

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)

Financial Measures - GAAP

Return on average invested capital - as-reported

12-months rolling earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - as-reported

12-months rolling earnings divided by average common equity

Net margin - as-reported

12-months rolling earnings divided by 12 months rolling revenue

Cash flow interest coverage

12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense

Book value per share

Common equity divided by end of period shares outstanding

Revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Total debt

Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any

Debt of joint ventures (Entergy's share)

Debt issued by Entergy-Koch, LP and Non-Nuclear Wholesale Assets business joint ventures for periods through third quarter 2004. Only Non-Nuclear Wholesale Assets business joint ventures debt included for periods thereafter.

Leases (Entergy's share)

Operating leases held by subsidiaries capitalized at implicit interest rate

Debt to capital

Gross debt divided by total capitalization

Financial Measures - Non-GAAP

Operational earnings

As-reported earnings applicable to common stock adjusted to exclude the impact of special items

Return on average invested capital - operational

12-months rolling operational earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - operational

12-months rolling operational earnings divided by average common equity

Net margin - operational

12-months rolling operational earnings divided by 12 months rolling revenue

Total gross liquidity

Sum of cash and revolver capacity

Net debt to net capital

Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents

Net debt including off-balance sheet liabilities

Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents

 

 

Appendices H-1 and H-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix H-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Return on Equity, Return on Invested Capital and Net Margin Metrics

($ in millions)

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

As-reported earnings-rolling 12 months (A)

715 

910 

874 

895 

963 

898 

920 

916 

Preferred dividends

23 

24 

23 

24 

25 

25 

27 

28 

Tax effected interest expense

293 

295 

282 

278 

287 

293 

304 

316 

As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B)

1,030 

1,228 

1,180 

1,197 

1,275 

1,217 

1,251 

1,260 

Special items in prior quarters

(100)

(11)

15 

37 

(11)

(43)

(37)

Special items 3Q04 thru 2Q06

Utility, Parent & Other
  Tax benefits- Entergy Koch

17 

Energy Commodity Services
  Gain (loss) on disposition of assets

(40)

60 

Energy Commodity Services asset and contract
  impairments

(36)

Utility, Parent & Other
  Comp Retail asset impairments

(26)

  Comp Retail discontinued operations

(1)

(3)

(7)

(8)

(2)

13 

  ENOI results

11 

     Total special items (C)

(140)

30 

13 

(2)

30 

(45)

(40)

(13)

Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)

1,170 

1,198 

1,166 

1,199 

1,245 

1,262 

1,291 

1,273 

Operational earnings, rolling 12 months (A-C)

855 

880 

861 

898 

933 

943 

960 

929 

Average invested capital (D)

17,462 

16,845 

16,825 

16,806 

17,033 

16,850 

17,140 

17,283 

Average common equity (E)

8,806 

8,500 

8,452 

8,347 

8,350 

8,020 

8,026 

8,080 

Operating revenues (F)

9,427 

9,686 

9,289 

9,465 

9,661 

10,106 

10,564 

10,747 

ROIC - as-reported (B/D)

5.9 

7.3 

7.0 

7.1 

7.5 

7.2 

7.3 

7.3 

 

ROIC - operational ((B-C)/D)

6.7 

7.1 

6.9 

7.1 

7.3 

7.5 

7.5 

7.4 

ROE - as-reported (A/E)

8.1 

10.7 

10.4 

10.7 

11.5 

11.2 

11.5 

11.3 

ROE - operational ((A-C)/E)

9.7 

10.4 

10.2 

10.8 

11.2 

11.8 

12.0 

11.5 

Net margin - as-reported (A/F)

7.6 

9.4 

9.4 

9.5 

10.0 

8.9 

8.7 

8.5 

Net margin - operational ((A-C)/F)

9.1 

9.1 

9.3 

9.5 

9.7 

9.3 

9.1 

8.6 

 

 

Appendix H-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics

($ in millions)

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

Gross debt (A)

8,070

7,807

8,033

8,283

8,865

9,288

9,329

9,402

Less cash and cash equivalents (B)

541

620

477

607

598

583

752

729

Net debt (C)

7,528

7,187

7,556

7,676

8,267

8,705

8,576

8,673

Total capitalization (D)

17,245

16,469

16,393

16,609

17,070

17,477

17,888

17,956

Less cash and cash equivalents (B)

541

620

477

607

598

583

752

729

Net capital (E)

16,703

15,849

15,916

16,002

16,472

16,894

17,135

17,227

Debt to capital ratio % (A/D)

46.8

47.4

49.0

49.9

51.9

53.1

52.1

52.4

Net debt to net capital ratio % (C/E)

45.1

45.3

47.5

48.0

50.2

51.5

50.0

50.4

Off-balance sheet liabilities (F)

1,030

769

771

780

779

778

732

671

Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F))

48.3

47.9

49.9

50.4

52.4

53.7

52.1

52.2

Revolver capacity (G)

1,310

1,490

1,070

1,407

791

2,545

2,733

2,710

Gross liquidity (B+G)

1,851

2,110

1,547

2,014

1,389

3,128

3,485

3,439

 

 

Entergy's common stock is listed on the New York, Chicago, and Pacific exchanges under the symbol "ETR".

Additional investor information can be accessed on-line at
www.entergy.com/earnings

**********************************************************************************************************************

In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in these statements. Some of those factors (in addition to the risk factors in the Form 10-K as well as others described in Entergy's Form 10-Q and in subsequent securities filings) include: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions and implementation of new Texas legislation, and other proceedings, including those related to Entergy's System Agreement, Entergy's utility supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, Entergy's ability to manage its operation and maintenance costs, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, the ability to hedge, sell power forward or otherwise reduce the market price risk associated with those facilities, including the Non-Utility Nuclear plants, and the prices and availability of fuel and power Entergy must purchase for its utility customers, and Entergy's ability to meet credit support requirements for fuel and power supply contracts, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies' ratings criteria, changes in inflation, interest rates, and foreign currency exchange rates, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities, changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, the establishment of a regional transmission organization that includes Entergy's utility service territory, and the application of market power criteria by the Federal Energy Regulatory Commission, changes in regulation of nuclear generation facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those in the northeastern United States, uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel storage and disposal, resolution of pending or future applications for license extensions or modifications of nuclear generating facilities, changes in law resulting from federal energy legislation, including the effects of the Public Utilities Holding Company Act of 1935 repeal, changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in Entergy's service territory, variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact of this proceeding on other Entergy companies, advances in technology, the potential effects of threatened or actual terrorism and war, the effects of Entergy's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy's ability to attract and retain talented management and directors.

 

Entergy Corporation 
 
Consolidating Balance Sheet 
June 30, 2006 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 110,815    $ 9,458    $ -    $ 120,273 
  Temporary cash investments - at cost,              
   which approximates market 211,466    397,195      608,661 
     Total cash and cash equivalents 322,281    406,653      728,934 
Notes receivable - Entergy New Orleans DIP loan 39,749        39,749 
Notes receivable 655,918    1,101,458    (1,756,241)   1,135 
Accounts receivable:              
  Customer 435,254        435,254 
  Allowance for doubtful accounts (24,591)       (24,591)
  Associated companies (6,129)   93,810    (87,681)   - 
  Other 322,704    208,849      531,553 
  Accrued unbilled revenues 279,696        279,696 
     Total receivables 1,006,934    302,659    (87,681)   1,221,912 
Deferred fuel costs 246,969        246,969 
Fuel inventory - at average cost 217,149    2,696      219,845 
Materials and supplies - at average cost 388,892    189,665      578,557 
Deferred nuclear refueling outage costs 38,348    93,136      131,484 
Prepayments and other 103,984    29,405      133,389 
TOTAL 3,020,224    2,125,672    (1,843,922)   3,301,974 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,035,888    423,047    (8,151,118)   307,817 
Decommissioning trust funds 1,161,384    1,476,400      2,637,784 
Non-utility property - at cost (less accumulated depreciation) 216,012    3,495      219,507 
Other 34,233    7,247      41,480 
TOTAL 9,447,517    1,910,189    (8,151,118)   3,206,588 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,985,884    2,242,231    (2,590)   30,225,525 
Property under capital lease 724,290        724,290 
Natural gas 88,029        88,029 
Construction work in progress 677,172    158,844      836,016 
Nuclear fuel under capital lease 273,878        273,878 
Nuclear fuel 95,420    288,397      383,817 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,844,673    2,689,472    (2,590)   32,531,555 
Less - accumulated depreciation and amortization 12,913,358    310,205      13,223,563 
PROPERTY, PLANT AND EQUIPMENT - NET 16,931,315    2,379,267    (2,590)   19,307,992 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 730,503        730,503 
  Other regulatory assets 2,394,171        2,394,171 
  Deferred fuel costs 168,122        168,122 
Long-term receivables 23,640        23,640 
Goodwill 374,099    3,073      377,172 
Other 880,826    791,899    (619,214)   1,053,511 
TOTAL 4,571,361    794,972    (619,214)   4,747,119 
               
TOTAL ASSETS $ 33,970,417    $ 7,210,100    $ (10,616,844)   $ 30,563,673 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
June 30, 2006 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 23,335    $ 84,856    $ -    $ 108,191 
Notes payable:              
  Associated companies 1,219,135    537,106    (1,756,241)   - 
  Other 41        41 
Account payable:              
  Associated companies 66,992    13,027    (80,019)   - 
  Other 863,829    121,112      984,941 
Customer deposits 232,607        232,607 
Taxes accrued 119,605    92,495      212,100 
Accumulated deferred income taxes 101,045        101,045 
Nuclear refueling outage costs 1,022        1,022 
Interest accrued 124,922    8,179      133,101 
Obligations under capital leases 136,943        136,943 
Other 110,766    212,647      323,413 
TOTAL 3,000,242    1,069,422    (1,836,260)   2,233,404 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,490,989    134,275      5,625,264 
Accumulated deferred investment tax credits 367,618        367,618 
Obligations under capital leases 165,324        165,324 
Other regulatory liabilities 409,041        409,041 
Decommissioning and retirement cost liabilities 1,204,870    786,747      1,991,617 
Transition to competition 79,098        79,098 
Regulatory reserves 17,397        17,397 
Accumulated provisions 358,327    208,469      566,796 
Long-term debt 8,660,165    383,461    (63,891)   8,979,735 
Preferred stock with sinking fund 11,700        11,700 
Other 1,703,192    425,615    (566,098)   1,562,709 
TOTAL 18,467,721    1,938,567    (629,989)   19,776,299 
               
Preferred stock without sinking fund 310,684    426,146    (391,937)   344,893 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2006 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 6,647,348    1,588,834    (3,418,554)   4,817,628 
Retained earnings 5,612,721    1,272,853    (1,209,480)   5,676,094 
Accumulated other comprehensive income (loss) (20,189)   (134,262)   626    (153,825)
Less - treasury stock, at cost (40,104,825 shares in 2006) 2,253,302    43,316    (163,316)   2,133,302 
TOTAL 12,191,770    3,775,965    (7,758,658)   8,209,077 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 33,970,417     $ 7,210,100    $ (10,616,844)   $ 30,563,673 
               
*Totals may not foot due to rounding.              
               

 

Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 207,135    $ 14,638    $ -    $ 221,773 
  Temporary cash investments - at cost,              
   which approximates market 127,786    233,261      361,047 
     Total cash and cash equivalents 334,921    247,899      582,820 
Notes receivable - Entergy New Orleans DIP loan 90,000        90,000 
Notes receivable 575,873    1,144,505    (1,717,151)   3,227 
Accounts receivable:              
  Customer 629,717        629,717 
  Allowance for doubtful accounts (28,635)   (2,170)     (30,805)
  Associated companies 33,851    69,719    (103,570)   - 
  Other 296,286    162,866      459,152 
  Accrued unbilled revenues 477,570        477,570 
   Total receivables 1,408,789    230,415    (103,570)   1,535,634 
Deferred fuel costs 543,927        543,927 
Fuel inventory - at average cost 204,382    1,813      206,195 
Materials and supplies - at average cost 369,397    241,535      610,932 
Deferred nuclear refueling outage costs 64,157    93,607      157,764 
Prepayments and other 301,387    24,408      325,795 
TOTAL 3,892,833    1,984,182    (1,820,721)   4,056,294 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,198,240    428,006    (8,329,462)   296,784 
Decommissioning trust funds 1,136,006    1,470,759      2,606,765 
Non-utility property - at cost (less accumulated depreciation) 226,264    2,569      228,833 
Other 35,594    45,941      81,535 
TOTAL 9,596,104    1,947,275    (8,329,462)   3,213,917 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,176,956    1,987,079    (3,008)   29,161,027 
Property under capital lease 727,565        727,565 
Natural gas 86,794        86,794 
Construction work in progress 1,291,374    232,711      1,524,085 
Nuclear fuel under capital lease 271,615        271,615 
Nuclear fuel 101,403    335,243      436,646 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,655,707    2,555,033    (3,008)   32,207,732 
Less - accumulated depreciation and amortization 12,730,545    280,142      13,010,687 
PROPERTY, PLANT AND EQUIPMENT - NET 16,925,162    2,274,891    (3,008)   19,197,045 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 735,221        735,221 
  Other regulatory assets 2,133,724        2,133,724 
  Deferred fuel costs 120,489        120,489 
Long-term receivables 25,572        25,572 
Goodwill 374,099    3,073      377,172 
Other 841,068    801,587    (650,820)   991,835 
TOTAL 4,230,173    804,660    (650,820)   4,384,013 
               
TOTAL ASSETS $ 34,644,272    $ 7,011,008    $ (10,804,011)   $ 30,851,269 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 22,989    $ 80,528    $ -    $ 103,517 
Notes payable:              
  Associated companies 926,271    530,880    (1,457,151)   - 
  Other 40,041        40,041 
Account payable:              
  Associated companies 77,793    23,393    (101,186)   - 
  Other 1,494,385    161,402      1,655,787 
Customer deposits 222,044    162      222,206 
Taxes accrued 316,659    (128,500)     188,159 
Accumulated deferred income taxes 143,409        143,409 
Nuclear refueling outage costs 15,548        15,548 
Interest accrued 153,269    1,586      154,855 
Obligations under capital leases 130,882        130,882 
Other 66,367    407,143      473,510 
TOTAL 3,609,657    1,076,594    (1,558,337)   3,127,914 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,245,208    34,020      5,279,228 
Accumulated deferred investment tax credits 376,550        376,550 
Obligations under capital leases 175,005        175,005 
Other regulatory liabilities 408,667        408,667 
Decommissioning and retirement cost liabilities 1,161,830    762,141      1,923,971 
Transition to competition 79,101        79,101 
Regulatory reserves 18,624        18,624 
Accumulated provisions 350,265    205,763      556,028 
Long-term debt 8,791,811    349,073    (316,391)   8,824,493 
Preferred stock with sinking fund 13,950        13,950 
Other 1,729,077    749,961    (600,021)   1,879,017 
TOTAL 18,350,088    2,100,958    (916,412)   19,534,634 
               
Preferred stock without sinking fund 411,321    426,590    (391,937)   445,974 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
 issued 248,174,087 shares in 2005 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 6,653,879    1,565,320    (3,401,562)   4,817,637 
Retained earnings 5,712,395    1,121,151    (1,405,139)   5,428,407 
Accumulated other comprehensive income (loss) (16,300)   (328,145)   626    (343,819)
Less - treasury stock, at cost (40,644,602 shares in 2005) 2,281,960    43,316    (163,316)   2,161,960 
TOTAL 12,273,206    3,406,866    (7,937,325)   7,742,747 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,644,272    $ 7,011,008    $ (10,804,011)   $ 30,851,269 
               
*Totals may not foot due to rounding.

 

Entergy Corporation 
 
Consolidating Balance Sheet 
June 30, 2006 vs December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ (96,320)   $ (5,180)   $ -     $ (101,500)
  Temporary cash investments - at cost,               
   which approximates market 83,680     163,934     -     247,614 
    Total cash and cash equivalents (12,640)   158,754     -     146,114 
Notes receivable - Entergy New Orleans DIP loan (50,251)   -     -     (50,251)
Notes receivable 80,045     (43,047)   (39,090)   (2,092)
Accounts receivable:              
  Customer (194,463)   -     -     (194,463)
  Allowance for doubtful accounts 4,044     2,170     -     6,214 
  Associated companies (39,980)   24,091     15,889     - 
  Other 26,418     45,983     -     72,401 
  Accrued unbilled revenues (197,874)   -     -     (197,874)
     Total receivables (401,855)   72,244     15,889     (313,722)
Deferred fuel costs (296,958)   -     -     (296,958)
Fuel inventory - at average cost 12,767     883     -     13,650 
Materials and supplies - at average cost 19,495     (51,870)   -     (32,375)
Deferred nuclear refueling outage costs (25,809)   (471)   -     (26,280)
Prepayments and other (197,403)   4,997     -     (192,406)
TOTAL (872,609)   141,490     (23,201)   (754,320)
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity (162,352)   (4,959)   178,344     11,033 
Decommissioning trust funds 25,378     5,641     -     31,019 
Non-utility property - at cost (less accumulated depreciation) (10,252)   926     -     (9,326)
Other (1,361)   (38,694)   -     (40,055)
TOTAL (148,587)   (37,086)   178,344     (7,329)
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 808,928     255,152     418     1,064,498 
Property under capital lease (3,275)   -     -     (3,275)
Natural gas 1,235     -     -     1,235 
Construction work in progress (614,202)   (73,867)   -     (688,069)
Nuclear fuel under capital lease 2,263     -     -     2,263 
Nuclear fuel (5,983)   (46,846)   -     (52,829)
TOTAL PROPERTY, PLANT AND EQUIPMENT 188,966     134,439     418     323,823 
Less - accumulated depreciation and amortization 182,813     30,063     -     212,876 
PROPERTY, PLANT AND EQUIPMENT - NET 6,153     104,376     418     110,947 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net (4,718)   -     -     (4,718)
  Other regulatory assets 260,447    -     -     260,447 
  Deferred fuel costs 47,633    -     -     47,633 
Long-term receivables (1,932)   -     -     (1,932)
Goodwill   -     -     - 
Other 39,758    (9,688)   31,606     61,676 
TOTAL 341,188     (9,688)   31,606     363,106 
               
TOTAL ASSETS $ (673,855)   $ 199,092     $ 187,167     $ (287,596)
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
June 30, 2006 vs December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 346     $ 4,328    $ -    $ 4,674 
Notes payable:              
  Associated companies 292,864    6,226    (299,090)   - 
  Other (40,000)       (40,000)
Account payable:              
  Associated companies (10,801)   (10,366)   21,167    -
  Other (630,556)   (40,290)     (670,846)
Customer deposits 10,563    (162)     10,401 
Taxes accrued (197,054)   220,995      23,941 
Accumulated deferred income taxes (42,364)       (42,364)
Nuclear refueling outage costs (14,526)       (14,526)
Interest accrued (28,347)   6,593      (21,754)
Obligations under capital leases 6,061        6,061 
Other 44,399    (194,496)     (150,097)
TOTAL (609,415)   (7,172)   (277,923)   (894,510)
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 245,781    100,255      346,036 
Accumulated deferred investment tax credits (8,932)       (8,932)
Obligations under capital leases (9,681)       (9,681)
Other regulatory liabilities 374        374 
Decommissioning and retirement cost liabilities 43,040    24,606      67,646 
Transition to competition (3)       (3)
Regulatory reserves (1,227)       (1,227)
Accumulated provisions 8,062    2,706      10,768 
Long-term debt (131,646)   34,388    252,500    155,242 
Preferred stock with sinking fund (2,250)       (2,250)
Other (25,885)   (324,346)   33,923    (316,308)
TOTAL 117,633    (162,391)   286,423    241,665 
               
Preferred stock without sinking fund (100,637)   (444)     (101,081)
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2006 and 2005       - 
Paid-in capital (6,531)   23,514    (16,992)   (9)
Retained earnings (99,674)   151,702    195,659    247,687 
Accumulated other comprehensive income (loss) (3,889)   193,883      189,994 
Less - treasury stock, at cost (28,658)       (28,658)
TOTAL (81,436)   369,099    178,667    466,330 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (673,855)   $ 199,092    $ 187,167    $ (287,596)
               
*Totals may not foot due to rounding.              
               

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended June 30, 2006 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,178,280    $ -    $ (570)   $ 2,177,710 
Natural gas   13,612        13,612 
Competitive businesses   9,628    435,520    (7,968)   437,180 
     Total   2,201,520    435,520    (8,538)   2,628,502 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   599,399    62,220      661,619 
  Purchased power   575,644    9,917    (8,153)   577,408 
  Nuclear refueling outage expenses   20,023    22,523      42,546 
  Other operation and maintenance   393,883    179,849    (498)   573,234 
Decommissioning   20,540    15,718      36,258 
Taxes other than income taxes   77,251    13,879      91,130 
Depreciation and amortization   198,165    19,778      217,943 
Other regulatory charges (credits) - net   (58,929)       (58,929)
     Total   1,825,976    323,884    (8,651)   2,141,209 
                 
OPERATING INCOME   375,544    111,636    113    487,293 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   8,908        8,908 
Interest and dividend income   29,666    26,859    (21,386)   35,139 
Equity in earnings (loss) of unconsolidated equity affiliates   11,520    (3,037)     8,483 
Miscellaneous - net   (4,248)   (3,603)   (114)   (7,965)
     Total   45,846    20,219    (21,500)   44,565 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   119,947    2,723      122,670 
Other interest - net   21,385    15,223    (21,373)   15,235 
Allowance for borrowed funds used during construction   (5,405)       (5,405)
     Total   135,927    17,946    (21,373)   132,500 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   285,463    113,909    (14)   399,358 
                 
Income taxes   78,545    44,356      122,901 
                 
INCOME FROM CONTINUING OPERATIONS   206,918    69,553    (14)   276,457 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes of $7,190)   13,119        13,119 
                 
CONSOLIDATED NET INCOME   220,037    69,553    (14)   289,576 
                 
Preferred dividend requirements and other   6,919    869    (14)   7,774 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 213,118    $ 68,684    $ -    $ 281,802 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.96    $0.33        $1.29 
  DILUTED   $0.94    $0.33        $1.27 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.06          $0.06 
  DILUTED   $0.06          $0.06 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.02    $0.33        $1.35 
  DILUTED   $1.00    $0.33        $1.33 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,982,485 
  DILUTED               211,557,985 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended June 30, 2005 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,044,994    $ -    $ (328)   $ 2,044,666 
Natural gas   12,532        12,532 
Competitive businesses   13,351    393,447    (18,605)   388,193 
     Total   2,070,877    393,447    (18,933)   2,445,391 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   361,850    57,510      419,360 
  Purchased power   613,445    13,841    (18,724)   608,562 
  Nuclear refueling outage expenses   17,966    21,184      39,150 
  Other operation and maintenance   400,454    158,604    (323)   558,735 
Decommissioning   21,987    14,538      36,525 
Taxes other than income taxes   80,084    14,932      95,016 
Depreciation and amortization   186,302    18,118      204,420 
Other regulatory charges (credits) - net   (31,951)       (31,951)
     Total   1,650,137    298,727    (19,047)   1,929,817 
                 
OPERATING INCOME   420,740    94,720    114    515,574 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   10,918        10,918 
Interest and dividend income   29,268    21,095    (15,922)   34,441 
Equity in earnings (loss) of unconsolidated equity affiliates   11,613    (1,322)     10,291 
Miscellaneous - net   (9,445)   (1,397)   (114)   (10,956)
     Total   42,354    18,376    (16,036)   44,694 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   101,985    3,796      105,781 
Other interest - net   13,889    15,294    (15,908)   13,275 
Allowance for borrowed funds used during construction   (5,996)       (5,996)
     Total   109,878    19,090    (15,908)   113,060 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   353,216    94,006    (14)   447,208 
                 
Income taxes   118,067    33,782      151,849 
                 
INCOME FROM CONTINUING OPERATIONS   235,149    60,224    (14)   295,359 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($1,502))   (2,811)       (2,811)
                 
CONSOLIDATED NET INCOME   232,338    60,224    (14)   292,548 
                 
Preferred dividend requirements and other   5,543    869    (14)   6,398 
                  
EARNINGS APPLICABLE TO COMMON STOCK   $ 226,795    $ 59,355    $ -    $ 286,150 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $1.09    $0.28        $1.37 
  DILUTED   $1.06    $0.28        $1.34 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)         ($0.01)
  DILUTED   ($0.01)         ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.08    $0.28        $1.36 
  DILUTED   $1.05    $0.28        $1.33 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               211,134,467 
  DILUTED               215,568,534 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 133,286    $ -    $ (242)   $ 133,044 
Natural gas   1,080        1,080 
Competitive businesses   (3,723)   42,073    10,637    48,987 
    Total   130,643    42,073    10,395    183,111 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   237,549    4,710      242,259 
  Purchased power   (37,801)   (3,924)   10,571    (31,154)
  Nuclear refueling outage expenses   2,057    1,339      3,396 
  Other operation and maintenance   (6,571)   21,245    (175)   14,499 
Decommissioning   (1,447)   1,180      (267)
Taxes other than income taxes   (2,833)   (1,053)     (3,886)
Depreciation and amortization   11,863    1,660      13,523 
Other regulatory charges (credits )- net   (26,978)       (26,978)
     Total   175,839    25,157    10,396    211,392 
                 
OPERATING INCOME   (45,196)   16,916    (1)   (28,281)
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   (2,010)       (2,010)
Interest and dividend income   398    5,764    (5,464)   698 
Equity in earnings (loss) of unconsolidated equity affiliates   (93)   (1,715)     (1,808)
Miscellaneous - net   5,197    (2,206)     2,991 
     Total   3,492    1,843    (5,464)   (129)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   17,962    (1,073)     16,889 
Other interest - net   7,496    (71)   (5,465)   1,960 
Allowance for borrowed funds used during construction   591        591 
     Total   26,049    (1,144)   (5,465)   19,440 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (67,753)   19,903      (47,850)
                 
Income taxes   (39,522)   10,574      (28,948)
                 
INCOME FROM CONTINUING OPERATIONS   (28,231)   9,329      (18,902)
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)   15,930        15,930 
                 
CONSOLIDATED NET INCOME   (12,301)   9,329      (2,972)
                 
Preferred dividend requirements and other   1,376        1,376 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (13,677)   $ 9,329    $ -    $ (4,348)
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($0.13)   $0.05        ($0.08)
  DILUTED   ($0.12)   $0.05        ($0.07)
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.07          $0.07 
  DILUTED   $0.07          $0.07 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.06)   $0.05        ($0.01)
  DILUTED   ($0.05)   $0.05        - 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Six Months Ended June 30, 2006 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 4,271,887    $ -    $ (1,241)   $ 4,270,646 
Natural gas   51,027        51,027 
Competitive businesses   19,846    880,001    (24,983)   874,864 
     Total   4,342,760    880,001    (26,224)   5,196,537 
                  
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   1,381,075    120,716      1,501,791 
  Purchased power   1,044,774    19,244    (25,240)   1,038,778 
  Nuclear refueling outage expenses   39,859    44,681      84,540 
  Other operation and maintenance   745,482    358,394    (1,212)   1,102,664 
Decommissioning   40,717    31,137      71,854 
Taxes other than income taxes   163,530    30,938      194,468 
Depreciation and amortization   385,735    37,597      423,332 
Other regulatory charges (credits) - net   (102,946)       (102,946)
     Total   3,698,226    642,707    (26,452)   4,314,481 
                 
OPERATING INCOME   644,534    237,294    228    882,056 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   24,367        24,367 
Interest and dividend income   68,699    55,927    (45,658)   78,968 
Equity in earnings (loss) of unconsolidated equity affiliates   17,886    (5,816)     12,070 
Miscellaneous - net   (9,672)   (4,270)   (228)   (14,170)
     Total   101,280    45,841    (45,886)   101,235 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   238,551    4,600      243,151 
Other interest - net   45,061    33,065    (45,631)   32,495 
Allowance for borrowed funds used during construction   (14,450)       (14,450)
     Total   269,162    37,665    (45,631)   261,196 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   476,652    245,470    (27)   722,095 
                 
Income taxes   147,099    94,633      241,732 
                 
INCOME FROM CONTINUING OPERATIONS   329,553    150,837    (27)   480,363 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes of $5,986)   10,880        10,880 
                 
CONSOLIDATED NET INCOME   340,433    150,837    (27)   491,243 
                 
Preferred dividend requirements and other   14,102    1,737    (27)   15,812 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 326,331    $ 149,100    $ -    $ 475,431 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $1.52    $0.72        $2.24 
  DILUTED   $1.49    $0.71        $2.20 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.05          $0.05 
  DILUTED   $0.05          $0.05 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.57    $0.72        $2.29 
  DILUTED   $1.54    $0.71        $2.25 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,858,104 
  DILUTED               211,467,674 
                 
*Totals may not foot due to rounding.                
                 
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Six Months Ended June 30, 2005 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 3,747,479    $ -    $ (796)   $ 3,746,683 
Natural gas   39,387        39,387 
Competitive businesses   23,277    781,423    (35,198)   769,502 
     Total   3,810,143    781,423    (35,994)   4,555,572 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   808,951    109,394      918,345 
  Purchased power   1,054,942    20,759    (35,517)   1,040,184 
  Nuclear refueling outage expenses   34,772    44,188      78,960 
  Other operation and maintenance   743,345    319,735    (705)   1,062,375 
Decommissioning   44,243    29,281      73,524 
Taxes other than income taxes   158,547    27,085      185,632 
Depreciation and amortization   383,714    36,227      419,941 
Other regulatory charges (credits) - net   (49,971)       (49,971)
     Total   3,178,543    586,669    (36,222)   3,728,990 
                 
OPERATING INCOME   631,600    194,754    228    826,582 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   23,521        23,521 
Interest and dividend income   53,919    44,471    (33,331)   65,059 
Equity in earnings (loss) of unconsolidated equity affiliates   16,384    (2,791)     13,593 
Miscellaneous - net   (12,023)   27,228    (228)   14,977 
     Total   81,801    68,908    (33,559)   117,150 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   205,728    7,320      213,048 
Other interest - net   28,419    29,646    (33,304)   24,761 
Allowance for borrowed funds used during construction   (13,273)       (13,273)
     Total   220,874    36,966    (33,304)   224,536 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   492,527    226,696    (27)   719,196 
                 
Income taxes   158,734    85,358      244,092 
                 
INCOME FROM CONTINUING OPERATIONS   333,793    141,338    (27)   475,104 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($2,234))   (4,177)      -    (4,177)
                  
CONSOLIDATED NET INCOME   329,616    141,338    (27)   470,927 
                 
Preferred dividend requirements and other   11,071    1,737    (27)   12,781 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 318,545    $ 139,601    $ -    $ 458,146 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $1.52    $0.65        $2.17 
  DILUTED   $1.49    $0.64        $2.13 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.02)         ($0.02)
  DILUTED   ($0.02)         ($0.02)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.50    $0.65        $2.15 
  DILUTED   $1.47    $0.64        $2.11 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               212,622,976 
  DILUTED               217,091,580 
                 
*Totals may not foot due to rounding.                
                 
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Six Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 524,408    $ -    $ (445)   $ 523,963 
Natural gas   11,640        11,640 
Competitive businesses   (3,431)   98,578    10,215    105,362 
     Total   532,617    98,578    9,770    640,965 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   572,124    11,322      583,446 
  Purchased power   (10,168)   (1,515)   10,277    (1,406)
  Nuclear refueling outage expenses   5,087    493      5,580 
  Other operation and maintenance   2,137    38,659    (507)   40,289 
Decommissioning   (3,526)   1,856      (1,670)
Taxes other than income taxes   4,983    3,853      8,836 
Depreciation and amortization   2,021    1,370      3,391 
Other regulatory charges (credits )- net   (52,975)       (52,975)
     Total   519,683    56,038    9,770    585,491 
                 
OPERATING INCOME   12,934    42,540      55,474 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   846        846 
Interest and dividend income   14,780    11,456    (12,327)   13,909 
Equity in earnings (loss) of unconsolidated equity affiliates   1,502    (3,025)     (1,523)
Miscellaneous - net   2,351    (31,498)     (29,147)
     Total   19,479    (23,067)   (12,327)   (15,915)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   32,823    (2,720)     30,103
Other interest - net   16,642    3,419    (12,327)   7,734
Allowance for borrowed funds used during construction   (1,177)       (1,177)
     Total   48,288    699    (12,327)   36,660
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (15,875)   18,774      2,899 
                 
Income taxes   (11,635)   9,275      (2,360)
                 
INCOME FROM CONTINUING OPERATIONS   (4,240)   9,499      5,259 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)   15,057        15,057 
                 
CONSOLIDATED NET INCOME   10,817    9,499      20,316 
                 
Preferred dividend requirements and other   3,031        3,031 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 7,786    $ 9,499    $ -    $ 17,285 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC     $0.07        $0.07 
  DILUTED     $0.07        $0.07 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.07          $0.07 
  DILUTED   $0.07          $0.07 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.07    $0.07        $0.14 
  DILUTED   $0.07    $0.07        $0.14 
                 
                 
*Totals may not foot due to rounding.                
                 
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Twelve Months Ended June 30, 2006 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 8,973,689    $ -    $ (2,897)   $ 8,970,792 
Natural gas   89,300        89,300 
Competitive businesses   42,571    1,711,857    (67,311)   1,687,117 
     Total   9,105,560    1,711,857    (70,208)   10,747,209 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,514,010    245,449      2,759,459 
  Purchased power   2,549,368    38,578    (68,207)   2,519,739 
  Nuclear refueling outage expenses   79,052    89,180      168,232 
  Provision for turbine commitments, asset impairments                
   and restructuring charges         - 
  Other operation and maintenance   1,460,732    704,321    (2,457)   2,162,596 
Decommissioning   80,384    61,068      141,452 
Taxes other than income taxes   330,749    60,609      391,358 
Depreciation and amortization   791,677    68,092      859,769 
Other regulatory charges (credits) - net   (102,857)       (102,857)
  Total   7,703,115    1,267,297    (70,664)   8,899,748 
                 
OPERATING INCOME   1,402,445    444,560    456    1,847,461 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   46,583        46,583 
Interest and dividend income   140,020    106,976    (82,606)   164,390 
Equity in earnings (loss) of unconsolidated equity affiliates   11,964    (12,502)     (538)
Miscellaneous - net   (16,681)   2,242    (456)   (14,895)
     Total   181,886    96,716    (83,062)   195,540 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   459,878    10,559      470,437 
Other interest - net   96,255    58,678    (82,551)   72,382 
Allowance for borrowed funds used during construction   (30,552)       (30,552)
     Total   525,581    69,237    (82,551)   512,267 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,058,750    472,039    (55)   1,530,734 
                 
Income taxes   392,037    164,887      556,924 
                 
INCOME FROM CONTINUING OPERATIONS   666,713    307,152    (55)   973,810 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (15,831))   (29,736)       (29,736)
                 
CONSOLIDATED NET INCOME   636,977    307,152    (55)   944,074 
                 
Preferred dividend requirements and other   25,038    3,475    (55)   28,458 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 611,939    $ 303,677    $ -    $ 915,616 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.09    $1.46        $4.55 
  DILUTED   $3.03    $1.44        $4.47 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.14)         ($0.14)
  DILUTED   ($0.14)         ($0.14)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.95    $1.46        $4.41 
  DILUTED   $2.89    $1.44        $4.33 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,779,033 
  DILUTED               211,653,624 
                 
*Totals may not foot due to rounding.                
                 
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended June 30, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 7,864,454    $ -     $ (1,707)   $ 7,862,747 
Natural gas   62,820        62,820 
Competitive businesses   48,489    1,556,849    (65,703)   1,539,635 
     Total   7,975,763    1,556,849    (67,410)   9,465,202 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,014,402    217,945      2,232,347 
  Purchased power   1,939,448    46,753    (66,112)   1,920,089 
  Nuclear refueling outage expenses   70,291    94,036      164,327 
  Provision for turbine commitments, asset impairments                 
   and restructuring charges     55,000      55,000 
  Other operation and maintenance   1,537,985    685,161    (2,172)   2,220,974 
Decommissioning   89,280    58,327      147,607 
Taxes other than income taxes   312,430    55,441      367,871 
Depreciation and amortization   808,502    64,108      872,610 
Other regulatory charges (credits) - net   (102,518)       (102,518)
     Total   6,669,820    1,276,771    (68,284)   7,878,307 
                 
OPERATING INCOME   1,305,943    280,078    874    1,586,895 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   46,661        46,661 
Interest and dividend income   98,070    84,972    (62,589)   120,453 
Equity in earnings (loss) of unconsolidated equity affiliates   24,537    (121,622)     (97,085)
Miscellaneous - net   7,660    45,503    (874)   52,289 
     Total   176,928    8,853    (63,463)   122,318 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   417,914    15,200      433,114 
Other interest - net   50,764    57,247    (62,507)   45,504 
Allowance for borrowed funds used during construction   (28,058)       (28,058)
     Total   440,620    72,447    (62,507)   450,560 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,042,251    216,484    (82)   1,258,653 
                 
Income taxes   355,947    (22,531)     333,416 
                 
INCOME FROM CONTINUING OPERATIONS   686,304    239,015    (82)   925,237 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($2,478))   (5,772)       (5,772)
                 
CONSOLIDATED NET INCOME   680,532    239,015    (82)   919,465 
                 
Preferred dividend requirements and other   22,186    2,034    (82)   24,138 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 658,346    $ 236,981    $ -    $ 895,327 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.03    $1.09        $4.12 
  DILUTED   $2.98    $1.06        $4.04 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.02)         ($0.02)
  DILUTED   ($0.02)         ($0.02)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $3.01    $1.09        $4.10 
  DILUTED   $2.96    $1.06        $4.02 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               218,492,544 
  DILUTED               222,830,243 
                 
*Totals may not foot due to rounding.                
                 

 

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,109,235    $ -    $ (1,190)   $ 1,108,045 
Natural gas   26,480        26,480 
Competitive businesses   (5,918)   155,008    (1,608)   147,482 
     Total   1,129,797    155,008    (2,798)   1,282,007 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   499,608    27,504      527,112 
  Purchased power   609,920    (8,175)   (2,095)   599,650 
  Nuclear refueling outage expenses   8,761    (4,856)     3,905 
  Provision for turbine commitments, asset impairments                
   and restructuring charges     (55,000)     (55,000)
  Other operation and maintenance   (77,253)   19,160    (285)   (58,378)
Decommissioning   (8,896)   2,741      (6,155)
Taxes other than income taxes   18,319    5,168      23,487 
Depreciation and amortization   (16,825)   3,984      (12,841)
Other regulatory charges (credits) - net   (339)       (339)
     Total   1,033,295    (9,474)   (2,380)   1,021,441 
                 
OPERATING INCOME   96,502    164,482    (418)   260,566 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   (78)       (78)
Interest and dividend income   41,950    22,004    (20,017)   43,937 
Equity in earnings (loss) of unconsolidated equity affiliates   (12,573)   109,120      96,547 
Miscellaneous - net   (24,341)   (43,261)   418    (67,184)
     Total   4,958    87,863    (19,599)   73,222 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   41,964    (4,641)     37,323 
Other interest - net   45,491    1,431    (20,044)   26,878 
Allowance for borrowed funds used during construction   (2,494)       (2,494)
     Total   84,961    (3,210)   (20,044)   61,707 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   16,499    255,555    27    272,081 
                 
Income taxes   36,090    187,418      223,508 
                 
INCOME FROM CONTINUING OPERATIONS   (19,591)   68,137    27    48,573 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (23,964)       (23,964)
                 
CONSOLIDATED NET INCOME   (43,555)   68,137    27    24,609 
                 
Preferred dividend requirements and other   2,852    1,441    27    4,320 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (46,407)   $ 66,696    $ -    $ 20,289 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.06    $0.37        $0.43 
  DILUTED   $0.05    $0.38        $0.43 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.12)         ($0.12)
  DILUTED   ($0.12)         ($0.12)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.06)   $0.37        $0.31 
  DILUTED   ($0.07)   $0.38        $0.31 
                 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Three Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $289,576    $292,548    ($2,972)
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:            
  Reserve for regulatory adjustments   (479)   (90,420)   89,941 
  Other regulatory credits - net   (58,929)   (31,951)   (26,978)
  Depreciation, amortization, and decommissioning   254,825    241,369    13,456 
  Deferred income taxes and investment tax credits   (32,180)   68,701    (100,881)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (8,484)   (9,291)   807 
  Changes in working capital:            
    Receivables   (9,539)   (259,173)   249,634 
    Fuel inventory   14,957    12,338    2,619 
    Accounts payable   (29,330)   150,584    (179,914)
    Taxes accrued   76,651    45,425    31,226 
    Interest accrued   (4,893)   (7,911)   3,018 
    Deferred fuel   73,216    (146,087)   219,303 
    Other working capital accounts   (37,005)   47,177    (84,182)
  Provision for estimated losses and reserves   10,008    420    9,588 
  Changes in other regulatory assets   (89,853)   9,303    (99,156)
  Other   19,487    (46,645)   66,132 
Net cash flow provided by operating activities   468,028    276,387    191,641 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (277,924)   (344,175)   66,251 
Allowance for equity funds used during construction   8,908    10,919    (2,011)
Nuclear fuel purchases   (33,223)   (80,839)   47,616 
Proceeds from sale/leaseback of nuclear fuel   32,282    43,022    (10,740)
Proceeds from sale of assets and businesses   77,159      77,159 
Payment for purchase of plant     (162,075)   162,075 
Decrease (increase) in other investments   37,730    27,389    10,341 
Purchase of other temporary investments     (153,300)   153,300 
Liquidation of other temporary investments     630,250    (630,250)
Proceeds from nuclear decommissioning trust fund sales   239,932    202,936    36,996 
Investment in nuclear decommissioning trust funds   (261,504)   (226,382)   (35,122)
Other regulatory investments   (19,031)   (63,800)   44,769 
Net cash flow used in investing activities   (195,671)   (116,055)   (79,616)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   489,281    656,873    (167,592)
  Preferred stock     30,000    (30,000)
  Common stock and treasury stock   3,567    25,588    (22,021)
Retirement of long-term debt   (488,097)   (365,600)   (122,497)
Repurchase of common stock     (257,227)   257,227 
Redemption of preferred stock   (178,810)     (178,810)
Changes in credit line borrowings - net     (75)   75 
Dividends paid:            
  Common stock   (112,268)   (113,849)   1,581 
  Preferred stock   (9,099)   (6,370)   (2,729)
Net cash flow used in financing activities   (295,426)   (30,660)   (264,766)
             
Effect of exchange rates on cash and cash equivalents   (383)   85    (468)
             
Net increase (decrease) in cash and cash equivalents   (23,452)   129,757    (153,209)
             
Cash and cash equivalents at beginning of period   752,386    476,875    275,511 
             
Cash and cash equivalents at end of period   $728,934    $606,632    $122,302 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $136,025    $120,162    $15,863 
    Income taxes   $114,041    $73,677    $40,364 
             

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Six Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $491,243    $470,927    $20,316 
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:             
  Reserve for regulatory adjustments   41,683    (73,922)   115,605 
  Other regulatory credits - net   (102,946)   (49,971)   (52,975)
  Depreciation, amortization, and decommissioning   496,632    494,458    2,174 
  Deferred income taxes and investment tax credits   (84,441)   92,579    (177,020)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (9,896)   (11,993)   2,097 
  Changes in working capital:            
    Receivables   318,480    (124,234)   442,714 
    Fuel inventory   (13,650)   9,065    (22,715)
    Accounts payable   (285,750)   (14,685)   (271,065)
    Taxes accrued   535,654    68,495    467,159 
    Interest accrued   (21,754)   (17,715)   (4,039)
    Deferred fuel   272,835    (76,262)   349,097 
    Other working capital accounts   103,790    (48,972)   152,762 
  Provision for estimated losses and reserves   25,037    11,536    13,501 
  Changes in other regulatory assets   (165,527)   21,298    (186,825)
  Other   (120,847)   22,548    (143,395)
Net cash flow provided by operating activities   1,480,543    773,152    707,391 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (942,102)   (616,004)   (326,098)
Allowance for equity funds used during construction   24,367    23,521    846 
Nuclear fuel purchases   (124,250)   (184,445)   60,195 
Proceeds from sale/leaseback of nuclear fuel   41,109    125,680    (84,571)
Proceeds from sale of assets and businesses   77,159      77,159 
Payment for purchase of plant   (88,199)   (162,075)   73,876 
Decrease (increase) in other investments   50,070    63,193    (13,123)
Purchase of other temporary investments     (1,591,025)   1,591,025 
Liquidation of other temporary investments     1,778,975    (1,778,975)
Proceeds from nuclear decommissioning trust fund sales   523,806    430,226    93,580 
Investment in nuclear decommissioning trust funds   (573,921)   (478,753)   (95,168)
Other regulatory investments   (42,479)   (63,800)   21,321 
Net cash flow used in investing activities   (1,054,440)   (674,507)   (379,933)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   1,237,865    1,362,424    (124,559)
  Preferred stock   73,354    30,000    43,354 
  Common stock and treasury stock   15,372    89,868    (74,496)
Retirement of long-term debt   (1,143,746)   (701,914)   (441,832)
Repurchase of common stock     (639,820)   639,820 
Redemption of preferred stock   (181,060)   (2,250)   (178,810)
Changes in credit line borrowings - net   (40,000)   (150)   (39,850)
Dividends paid:            
  Common stock   (224,458)   (229,353)   4,895 
  Preferred stock   (16,760)   (12,779)   (3,981)
Net cash flow used in financing activities   (279,433)   (103,974)   (175,459)
             
Effect of exchange rates on cash and cash equivalents   (556)   129    (685)
             
Net increase (decrease) in cash and cash equivalents   146,114    (5,200)   151,314 
             
Cash and cash equivalents at beginning of period   582,820    619,786    (36,966)
             
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents     (7,954)   7,954 
             
Cash and cash equivalents at end of period   $728,934    $606,632    $122,302 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $282,454    $242,420    $40,034 
    Income taxes   ($231,325)   $83,688    ($315,013)
             
             

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Twelve Months Ended June 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $944,074    $919,465    $24,609 
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:            
  Reserve for regulatory adjustments   33,572    (42,635)   76,207 
  Other regulatory credits - net   (102,857)   (102,518)   (339)
  Depreciation, amortization, and decommissioning   1,004,026    1,021,988    (17,962)
 Deferred income taxes and investment tax credits   449,793    209,191    240,602 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   6,412    606,216    (599,804)
  Provision for asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   75,363    (166,935)   242,298 
    Fuel inventory   (105,840)   19,069    (124,909)
    Accounts payable   32,129    38,275    (6,146)
    Taxes accrued   294,844    43,576    251,268 
    Interest accrued   11,094    7,407    3,687 
    Deferred fuel   112,296    130,931    (18,635)
    Other working capital accounts   107,109    (27,659)   134,768 
  Provision for estimated losses and reserves   9,797    (2,672)   12,469 
  Changes in other regulatory assets   (498,759)   71,785    (570,544)
  Other   (237,621)   (46,244)   (191,377)
Net cash flow provided by operating activities   2,175,199    2,734,240    (559,041)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,784,184)   (1,403,011)   (381,173)
Allowance for equity funds used during construction   46,582    46,661    (79)
Nuclear fuel purchases   (254,219)   (322,386)   68,167 
Proceeds from sale/leaseback of nuclear fuel   99,832    173,974    (74,142)
Proceeds from sale of assets and businesses   77,159    53,452    23,707 
Payment for purchase of plant   (88,199)   (162,075)   73,876 
Investment in nonutility properties     2,022    (2,022)
Decrease (increase) in other investments   (3,218)   457,762    (460,980)
Purchase of other temporary investments     (2,844,425)   2,844,425 
Liquidation of other temporary investments     2,871,725    (2,871,725)
Proceeds from nuclear decommissioning trust fund sales   1,037,833    581,916    455,917 
Investment in nuclear decommissioning trust funds   (1,134,992)   (675,662)   (459,330)
Other regulatory investments   (369,135)   (86,670)   (282,465)
Net cash flow used in investing activities   (2,372,541)   (1,306,717)   (1,065,824)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   4,178,011    3,830,081    347,930 
  Preferred stock   171,349    30,000    141,349 
  Common stock and treasury stock   31,572    152,265    (120,693)
Retirement of long-term debt   (3,131,038)   (3,411,992)   280,954 
Repurchase of common stock   (238,368)   (1,386,579)   1,148,211 
Redemption of preferred stock   (212,529)   (3,450)   (209,079)
Changes in credit line borrowings - net     (110,304)   110,304 
Dividends paid:            
  Common stock   (448,613)   (454,905)   6,292 
  Preferred stock   (29,453)   (24,150)   (5,303)
Net cash flow provided by (used in) financing activities   320,931    (1,379,034)   1,699,965 
             
Effect of exchange rates on cash and cash equivalents   (1,287)   646    (1,933)
              
Net increase in cash and cash equivalents   122,302    49,135    73,167 
             
Cash and cash equivalents at beginning of period   606,632    557,497    49,135 
             
Cash and cash equivalents at end of period   $728,934    $606,632    $122,302 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $501,379    $453,124    $48,255 
    Income taxes   ($198,941)   $86,926    ($285,867)